Markets

The BRICs to consider now

DennisHabarov / Thinkstock
DennisHabarov / Thinkstock

Many BlackRock fund managers have raised their emerging market (EM) allocations lately, and we've warmed up in general to the asset class after a long underweight. EM valuations overall, as measured by the MSCI Emerging Markets Index, look cheap, and we see value for long-term investors. A Fed on hold and weaker dollar are good news for the asset class (see the chart below), and there are signs of progress on structural reforms in certain EM countries.

You may be wondering, however, what we think of the so-called BRIC countries in particular-otherwise known as Brazil, Russia, India and China-especially given the recent political-scandal and slowing-growth headlines surrounding some of these countries. Despite the economic and political challenges facing these one-time darlings of the EM world, we still see long-term opportunities within the BRIC universe.

We like Brazil

GDP

We're neutral toward Russia

oil prices

We favor India

We like China

Terry Simpson, CFA, is a multi-asset strategist for the BlackRock Investment Institute . He is a regular contributor to The Blog.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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